You and Your Lender: The Start of a Beautiful Relationship
You hear it over and over — Get the best deal by shopping for your loan! Compare and save! Find your best rate! And it’s true, you can increase your chance of a good lending experience by checking with more than one source before committing to a deal. However, even when shopping online for a mortgage, ignoring the human element could cost you money. Loans are not identical commodities, and loan professionals vary widely in their commitment and expertise. For example, Robert Kiyosaki, the author of the Rich Dad, Poor Dad financial publications, recommends that you assemble a team you trust for your real estate transactions and treat your team with respect. The cheapest loan or property could cost you in the long run if it’s not the right loan or the best investment, and an adversarial relationship with a loan officer raises everyone’s stress level.
So how do you establish a great relationship with a lender?
First, make sure this is someone you feel comfortable working with. A good loan professional should be asking you a lot of questions, such as how long you plan to keep your property, what your financial goals are, what plans you have for your career (a new business? retirement?) and family (new baby? college?). This person should be someone you feel okay discussing personal life stuff with. You, in turn, should have questions of your own. A loan comparison tool is a good start; it contains a list of things you’ll want to know before committing to a lender. Your loan professional should be able to explain the reasons behind any recommendations he or she makes; price is only one part of the dialog. Finally, treat your loan officer with respect, and if you don’t respect him or her then find someone you do. It’s easier for lenders to offer the best pricing or go the extra mile for clients they like–being nice can’t hurt and just may get you that extra phone call to an underwriter or appraiser that gets your loan approved.
So check with different sources when looking for a lender but don’t neglect the human aspect. Spending some quality time with your loan officer can result in a respectful and productive relationship, save you money, and make your transaction much smoother.
Tags: choosing a lending, find the best lender, how to find the best home loan, how to find the best mortgage, how to pick a lender
June 3rd, 2008 at 10:19 am
I would also add that a lender should be more than willing to answer any of your questions without making your feel like a dumbass. Its easy to feel intimidated by the process–I have been–twice. You don’t need a lender who makes the process even more stressful.
June 9th, 2008 at 12:47 pm
You are right. If you aren’t comfortable with your lender you need to find another one. There are many out there who are professional, knowledgeable, and actually care. If yours isn’t, kick him / her to the curb and find one you like and trust.